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Brown-Forman Announces a Series of Beneficial Stakeholder Actions

01/23/18

Includes Stock Split and Special Dividend

LOUISVILLE, Ky.--(BUSINESS WIRE)--Jan. 23, 2018--
Brown-Forman (NYSE:BFA) (NYSE:BFB) announced today that its Board of
Directors has approved a number of capital deployment actions aimed at
benefiting shareholders, employees, and the community. These actions
include a stock split and a special dividend, as well as additional
funding of the company’s defined benefit program and the creation of a
charitable foundation.

Paul Varga, Chief Executive Officer of Brown-Forman, said, "These
capital deployment actions underscore the strength of the company’s
balance sheet and health of our business, and are augmented by the
anticipated benefits due to tax reform. We believe the last many years
of significant capital investment and portfolio reshaping have helped
position our company for a continuation of the comprehensively strong
results that Brown-Forman has historically enjoyed. Today’s announcement
is reflective of the breadth and balance of stakeholder value we strive
to create over time."

The stock split will be effected in the form of a dividend on both Class
A and Class B common stock, payable in shares of Class B common stock.
For every four shares of either Class A or Class B common stock held,
shareholders of record as of the close of business on February 7, 2018
will receive one share of Class B common stock, with any fractional
shares payable in cash. The additional shares and cash for fractional
shares will be distributed to stockholders on February 28, 2018. Any
future cash dividend declared will reflect the greater number of shares
outstanding after. In addition, all per-share amounts in the company's
subsequent financial statements will reflect the stock split.

This will be the 14th stock split since the company’s listing
in 1934. Assuming there had been no splits over that time period, one
share of Class B common stock would be worth approximately $189,000
today.

The company also declared a special dividend of $1.00 on its Class A and
Class B common stock, which will be paid to stockholders of record on
April 2, 2018 and they will receive the cash dividend on April 23, 2018.
This equates to roughly $480 million after the implementation of the
stock split.

The company has also decided to fully fund its current pension liability
of $120 million, further strengthening an important employee retirement
benefit. Additionally, with the goal of helping to fund the company’s
ongoing philanthropic endeavors in the communities where Brown-Forman
employees live and work, the company is pursuing the creation of a
foundation with a contribution of $60-$70 million. The company
anticipates that the foundation’s proceeds will provide a consistent
amount of revenue per year for its charitable giving program independent
of the company’s yearly earnings.

Brown-Forman’s Board of Directors also declared a regular quarterly cash
dividend of 15 4/5 cents per share on its Class A and Class B common
stock, reflective of the planned five for four stock split. Stockholders
of record on March 5, 2018 will receive the cash dividend on April 2,
2018.

Referencing the impact of tax reform, Varga added, “As is customary for
Brown-Forman, we will provide an updated perspective on fiscal year 2018
with the release of third quarter results in early March, and this
update will incorporate the estimated impact of tax reform on an ongoing
basis.”

For almost 150 years, Brown-Forman Corporation has enriched the
experience of life by responsibly building fine quality beverage alcohol
brands, including Jack Daniel’s Tennessee Whiskey, Jack Daniel’s & Cola,
Jack Daniel’s Tennessee Honey, Jack Daniel’s Tennessee Fire, Gentleman
Jack, Jack Daniel’s Single Barrel, Finlandia, Korbel, el Jimador,
Woodford Reserve, Old Forester, Canadian Mist, Herradura, New Mix,
Sonoma-Cutrer, Early Times, Chambord, BenRiach, GlenDronach and Slane.
Brown-Forman’s brands are supported by nearly 4,700 employees and sold
in more than 165 countries worldwide. Brown-Forman was recently
recognized in the WSJ Management Top 250 List as the 37th
highest rated company for employee engagement, customer satisfaction,
innovation, social responsibility and financial strength. For more
information about the company, please visit http://www.brown-forman.com/.

This press release contains statements, estimates, and projections that
are “forward-looking statements” as defined under U.S. federal
securities laws. Words such as “aim,” “anticipate,” “aspire,” “believe,”
“continue,” “could,” “envision,” “estimate,” “expect,” “expectation,”
“intend,” “may,” “plan,” “potential,” “project,” “pursue,” “see,”
“seek,” “should,” “will,” and similar words identify forward-looking
statements, which speak only as of the date we make them. Except as
required by law, we do not intend to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise. By their nature, forward-looking statements
involve risks, uncertainties and other factors (many beyond our control)
that could cause our actual results to differ materially from our
historical experience or from our current expectations or projections.
These risks and uncertainties include, but are not limited to:

Risks associated with being a U.S.-based company with global
operations, including commercial, political and financial risks; local
labor policies and conditions; protectionist trade policies or
economic or trade sanctions; compliance with local trade practices and
other regulations, including anti-corruption laws; terrorism; and
health pandemics